Morrisons has announced that will continue to make immediate payments to its smaller suppliers until the end of January next year.
The retailer introduced the scheme in March to help food makers and farmers with their cashflow during the coronavirus pandemic. Back in June, it extended the offer for another three months.
Tesco and Aldi also have similar schemes running.
Morrisons stated that it wanted to provide firms with stability now that the UK was in recession and support British farmers.
To benefit, a supplier can have turnover with Morrisons of up £1m. The retailer claims it has around 3,000 such suppliers.
Morrisons’ previous standard payment period for small suppliers was 14 days. It now promises to release payment to banks within 48 hours.
A 5% discount that Morrisons’ farmers receive on their grocery shop is also being extended.
David Potts, Chief Executive of Morrisons, said: “Suppliers and farmers have told us they face ongoing pressure and we want to be there for them during this challenging period. We highly value the continued and consistent efforts of British farmers and small suppliers and want to say thank you and extend support where we can.”
